The option stating that all three statements are correct (I, II, and III) is accurate because they are derived from fundamental definitions in fiscal policy. The revenue deficit, calculated as revenue expenditure (₹80,000 crores) minus revenue receipts (₹60,000 crores), indeed equals ₹20,000 crores. The fiscal deficit includes net borrowings and is computed as total expenditure minus total receipts, resulting in ₹10,000 crores when factoring in borrowings. Lastly, the primary deficit subtracts interest payments from fiscal deficit, yielding ₹4,000 crores. This understanding is crucial in evaluating the financial health of a government and is a recurring theme in UPSC economics topics.